Scott v. Adal Corp.

419 A.2d 548, 276 Pa. Super. 459, 1980 Pa. Super. LEXIS 2236
CourtSuperior Court of Pennsylvania
DecidedMarch 21, 1980
Docket38
StatusPublished
Cited by11 cases

This text of 419 A.2d 548 (Scott v. Adal Corp.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scott v. Adal Corp., 419 A.2d 548, 276 Pa. Super. 459, 1980 Pa. Super. LEXIS 2236 (Pa. Ct. App. 1980).

Opinions

HOFFMAN, Judge:

This is an appeal from an order granting appellee Joseph A. Sullivan, Sheriff of Philadelphia County (Sheriff), judgment on the pleadings and an order sustaining the preliminary objections of appellees Adal Corporation (Adal) and Girard Trust Bank (Girard) and dismissing appellants’ class action complaint in equity. Appellants contend, inter alia, that the lower court erred in concluding that the individual members of their class have an adequate remedy at law.1 We agree and, accordingly, reverse the orders of the lower court and remand for further proceedings.

Appellants instituted this action by filing a complaint in equity on behalf of themselves and the class of all persons who have had or are subject to having their real property sold for grossly inadequate prices2 at sales conducted by the Sheriff in execution on judgments where the deeds to such property have not yet passed from the Sheriff to the purchasers. The action was brought against appellees and the class of all persons who are execution creditors or purchasers of real property sold at sheriff’s sales in execution on judgments against appellants or members of their class. The complaint averred that in 1975 Adal and Girard filed a complaint in the Court of Common Pleas of Philadelphia and obtained a money judgment against appellants. Appellants alleged that they never received notice of the complaint or judgment and that they had meritorious defenses to the complaint. The complaint further averred that Adal and [462]*462Girard sought to execute on the judgment by a sheriffs sale of appellant’s home. The home, which appellants alleged had a fair market value of approximately $15,000.00, was sold for $1,000.00 by the Sheriff to Adal and Girard. The deed to the property has not yet passed to the purchasers. Appellants alleged that the Sheriff sold their home and the real property of members of their class for grossly inadequate prices. Appellants further alleged that the Sheriff failed to utilize any procedure to ensure that the properties were sold for adequate prices. Additionally, the complaint averred that appellees have conducted and participated in the sheriff’s sale process in such a manner as to deprive appellants and their class members of their property without due process of law. Appellants requested the court to grant the following relief: (1) open or strike the judgment against appellants or, in the alternative, permanently enjoin appellees from executing thereon; (2) set aside the sheriff’s sales of their property and that of members of their class; (3) permanently enjoin the Sheriff from passing title in any sheriff’s sale of appellants’ property and that of members of their class; (4) order the Sheriff to establish and utilize a procedure which will ensure that title will not pass where the properties of appellants’ class are sold at sheriff’s sale for inadequate prices or without due process of law; and (5) such other relief as the court may consider just and equitable.

Adal and Girard filed preliminary objections, and the Sheriff filed a motion for judgment on the pleadings. The lower court, concluding that appellants and the members of their class have an adequate remedy at law, granted Adal’s and Girard’s preliminary objections and the Sheriff’s motion for judgment on the pleadings. This appeal followed.3

[463]*463A court of equity may refuse to exercise jurisdiction where plaintiff has an adequate remedy at law. See, e. g., DeLuca v. Buckeye Coal Co., 463 Pa. 513, 345 A.2d 637 (1975); Barco, Inc. v. Steel Crest Homes, Inc., 420 Pa. 553, 218 A.2d 221 (1966); Mahan v. Lower Merion Township, 418 Pa. 558, 212 A.2d 217 (1965). Rule 3132 of the Pennsylvania Rules of Civil Procedure provides in pertinent part: “Upon petition of any party in interest before delivery . of the sheriff’s deed to real property, the court may, upon proper cause shown, set aside the sale and order a resale or enter any other order which may be just and proper under the circumstances.” The fact that a court acting pursuant to Rule 3132 may apply equitable principles does not change the fact that the proceeding is one for the law side of the court. See Trachtenburg v. Sibarco Stations, Inc., 477 Pa. 517, 524, 384 A.2d 1209, 1212 (1978) (assumpsit action for the purchase price of land). It has long been recognized that gross inadequacy of price is a sufficient basis for setting aside a sheriff’s sale. See, e. g., Capozzi v. Antonoplos, 414 Pa. 565, 201 A.2d 420 (1964); Bell v. Mock, 413 Pa. 71, 197 A.2d 610 (1963); Hettler v. Shephard, 326 Pa. 165, 191 A. 581 (1937).

In the instant case, the lower court agreed with appellees’ contention that because appellants and members of their class can petition the court pursuant to Pa.R.Civ.P. 3132 to set aside each sheriff’s sale where the property is sold for a grossly inadequate price, they have an adequate remedy at [464]*464law.4 However, in dismissing appellants’ complaint against Adal and Girard and entering judgment on the pleadings in favor of the Sheriff, the lower court did not fully consider the class aspects of this case.

At the time this action was instituted, class actions were governed by Pa.R.Civ.P. 2230.5 Pursuant to that rule, our Supreme Court has held that members of a class are considered parties to the action from the filing of the complaint until properly excluded by the trial court. See Alessandro v. State Farm Mutual Insurance Co., 487 Pa. 274, 279 n.9, 409 A.2d 347, 350 n.9 (1979); Bell v. Beneficial Consumer Discount Co., 465 Pa. 225, 348 A.2d 734 (1975).6 Before the case moves beyond the pleading stage, the complaint must contain averments establishing that the following requirements are met:

“(1) [the class representative] is a member of the class; (2) the class consists of persons ‘so numerous as to make it impracticable to join all as parties;’ (3) ‘he will adequately represent the interests of all class members;’ (4) his interests are consonant with all members of the class; (5) there is a common issue shared by all class members which can be justly resolved in a single action; and (6) the relief sought is beneficial to all class members.”

Bell v. Beneficial Consumer Discount Co., 241 Pa.Super. 192, 198-99, 360 A.2d 681, 684 (1976) (quoting Klemow v. Time, [465]*465Inc., 466 Pa. 189, 196, 352 A.2d 12, 15, cert. denied, 429 U.S. 828, 97 S.Ct. 86, 50 L.Ed.2d 91 (1976)).5 *7

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Scott v. Adal Corp.
419 A.2d 548 (Superior Court of Pennsylvania, 1980)

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Bluebook (online)
419 A.2d 548, 276 Pa. Super. 459, 1980 Pa. Super. LEXIS 2236, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-adal-corp-pasuperct-1980.